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On August 18, 2022
Wayne-based Valley National Bank announced a new partnership with The Community Preservation Corporation (CPC) to fund up to $100 million in permanent loans that meet various Environmental, Social and Governance standards ( ESG) such as green building practices and reducing emissions. CPC and Valley are working to intentionally address the impacts of climate change through the mortgage process by encouraging developers to reach lower rates and higher leverage.
On August 9, Valley closed its first ESG-linked loan through a new partnership with CPC. The $1.9 million loan was provided to 1 Solstice Lane LLC of Geneva, New York through CPC’s Sustainable Mortgage Program. 1 Solstice Lane is a 12 unit apartment complex that was completed this past January. It has received many sustainable incentives from the NYSERDA and NYSEG programs. The property has multiple EV charging stations, uses a highly efficient heat pump system for heating, cooling and hot water, and has a rooftop solar array sized to cover all the electricity used in the building making this project Net Zero. Energy. The increased comfort and reduced utility costs associated with these features have helped drive successful facility rentals.
“As one of the nation’s leading regional banks with more than 90 years of service, we understand the important role we play in creating a sustainable future for the entire communities we serve, ” said Christopher J. Coiley, head of Valley Bank’s Commercial Real Estate Lending Group. “In CPC, we have found the perfect partner to help us deliver on that promise. As we move forward, we will continue to work with aspiring and innovative entrepreneurs who are making a positive impact on the local community and helping us create a more sustainable future for all.
“Decarbonizing the built environment by financing sustainable and affordable housing is a critical part of CPC’s mission as a nonprofit housing finance company. As an institution that shares our commitment to principals of ESG, the Valley is a natural fit for this partnership,” said Sadie McKeown, president of The Community Preservation Corporation. great opportunity to lead the development of practices and policies that improve the financial and physical quality and sustainability of the buildings and communities in which we live. and work.”
“From a developer’s perspective it’s exciting to work with lending and origination partners who understand the financial benefits of sustainable design and construction,” said Solar Village Company partner Ryan Wallace, developer of 1 Solstice Lane .
Valley is committed to building a responsible and sustainable future for the communities it serves. In recent years, the Bank has dedicated significant resources to making ESG a strategic priority. In early 2020, the Bank created an ESG Council that will bring together leadership across the organization to provide direction for its ESG efforts. Since that time, Valley has made significant strides forward in ESG-related initiatives. You can learn more about Valley Bank’s cultural, social and environmental initiatives by reading its ESG Report.
A certified carbon neutral company, CPC is committed to financing, advising on best practices, and advocating for solutions and policies to decarbonize the built environment and increase investments in the green economy. Since launching its sustainability platform, the company has financed more than 11,000 sustainable, high-performance multifamily units, including approximately 1,540 units in the last fiscal year. As part of its commitment to advocacy and knowledge sharing, CPC has developed a variety of publicly available resources including comprehensive guidelines on financing high-performance buildings, and regularly holds webinars and other public forums to support and promote energy efficiency and decarbonization in the multifamily sector. .
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